Marketing push increases WDT loss

By Phil Boeyen, ShareChat Business News Editor

Wednesday 28th February 2001

Increased sales and marketing costs have almost doubled the half-year loss for Auckland-based innovator Wellington Drive Technologies (NZSE: WDT).

The company's loss of $858,000 for the six months ended December compares with last year's loss of $448,000. It received $610,000 income during the six-month period, and raised just over $3.5 million from share issues. At the end of the year it had cash of just under $4.5 million.

WDT says the increased loss was expected as it cranked up selling efforts for its brushless electric motors.

MD Ross Green says marketing and sales activities were increased substantially from October last year, including the appointment of a marketing manager and sales manager.

"Contract staff operating in Europe were also engaged during the lead up to the company's display at the Domotechnica 2001 exhibition in Cologne, Germany scheduled for March 2001," he says.

Wellington Drive listed on the main board today after five years on the unlisted market. Mr Green says the listing will give shareholders increased liquidity, and give the company more credibility when dealing with major international companies.

He says the listing also coincides with the upcoming worldwide release of two motors with mass-market potential at the Domotechnica fair.

"The company will release a low power fan motor suitable for use in many domestic appliances and a higher powered motor suitable for air conditioning units, heat pumps, etc."

"This will effectively be the worldwide release of both motors as to date we have only demonstrated both designs to a very select group of potential customers. The few potential clients who have seen the products have been enthusiastic about their qualities and we expect to get significant interest arising from Domotechnica."

WDT shares closed in their first day on the main board at 81 cents.

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